Rick Dykes on Tuesday agreed to pay Ford Motor Credit $58.7 million. Court records were updated late in the afternoon to reflect a “consent judgement.”
The documents do not say how much money Ford might still want to collect from Bart Reagor.
Ford sued Reagor Dykes on July 31, 2018 with allegations of fraud and default. Ford claimed that the Lubbock-based Reagor Dykes dealerships manipulated automotive sales records to make it look like the dealership did not owe money on vehicles that already sold.
At least three Lubbock-area banks accused Reagor Dykes of a specific form of fraud called check kiting.
Reagor Dykes filed for bankruptcy on August 1, and so Ford was not able to continue the lawsuit against the dealerships. However, Mr. Reagor and Mr. Dykes did not file for personal bankruptcy. Ford continued to sue the two men individually.
Both men had previously signed a personal guarantee with Ford. That means they promised to personally make good on the debt if the business could not pay it off. Ford at one point said the total debt was roughly $110 million with roughly $40 million in default.